Taxes, fees may accompany oil price boom

ODESSA (AP) - Morris Burns can see the effect of higher oil prices at meetings of the Permian Basin Petroleum Association.

''There are a lot more smiles around here,'' said Burns, executive vice president of the oil producers group. ''We have better attendance at meetings, and everyone's mood is a whole lot better.''

While the higher prices have boosted the bottom line of producers, Burns warns that the industry is facing new challenges, including the possibility of higher taxes.

''We have got to be a lot more diligent and careful because of the higher oil prices and the perception that we are making millions of dollars and therefore we need to give some of it to the state,'' he told the Odessa American. ''The Legislature is looking to us for more money.''

Other issues being watched by oil producers include a proposal to levy fees on overweight trucks to help pay for county roads. Previous proposals would have exempted the agriculture industry but not oilfield trucks from the charges.

Burns was adamant in opposition to suggestions that counties be allowed to set overweight fees, calling it ''just a license to steal.''

In addition to lobbying the Legislature, the Permian Basin oil group serves as a clearinghouse of information for members, notifying them about new laws and regulations affecting the industry.

About 70 percent of the oil produced in Texas and about 20 percent of all U.S. production comes from the Permian Basin, according to the association.

John Bell, owner of Bell Energy in Kermit and oilfield activist, said the association will play a vital role in leading the West Texas oil and gas industry through a time of uncertainty. Part of that role, he said, will be working with the next administration in Washington.

''Whoever gets elected, we've got to sit down in Washington, D.C., and talk about a long-term energy policy and strategy,'' Bell said.

Bell also said the industry needs to lure workers back to the industry, which saw massive layoffs when the price of oil fell in the late '90s.

''One of the things that happened is we lost 65,000 people out of this industry that got laid off or retired,'' he said. ''We have not been able to recover these people ... I estimate we have lost over 1 million years of experience.''